Archive for the 'General' Category

Helping you understand: returns from your investment

Wednesday, September 1st, 2010

From the tens of thousands of potential investments available most people want to make a reasonable return for the level of risk being taken. MLC have produced a concise blurb regarding understanding returns from your investment.

Find it at this link .

Naturally enough types of returns can be split into narrower and narrower groups based upon the investors needs and the type of investment. Extra grouping is good for the experts but for us common folk it’s somewhat unneccessary to complicate things even further.

Learn enough to find out what you need to know and recognise what you don’t. When you don’t know something and feel you need to learn more, seek advice from someone who is in a position to help you better understand.

Where to from here?

If you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265570.

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 - 153 Miller St, North Sydney NSW 2060

June 2010 Economic Market and Fund Performance Update

Thursday, June 10th, 2010

Ongoing European sovereign debt concerns continue to impact markets and investor confidence. In this video update, MLC’s Investment Strategist Brian Parker looks at:

  • the persistant issues with Greece and Europe
  • the mixed bag of economic numbers in Australia, and
  • what it all means for investors.

View the June market update video here.

While sharemarkets continue to suffer from the European debt crisis, other influences have also contributed to a difficult month for investors. In this fund performance update, MLC’s Senior Investment Strategist John Owen looks at:

  • the effect of the resources tax on the Australian sharemarket
  • the drop of the AUD against major currencies, and
  • one year returns for the MLC Horizon 4 & 5 Portfolios

View the June MLC Fund Performance Update video here.

Where to from here?

If you would like to discuss the topics raised in this video or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 - 153 Miller St, North Sydney NSW 2060

The Government Superannuation Co-contribution

Tuesday, June 8th, 2010

If you are eligible …. it’s quite possibly the easiest money you’ll ever make.

The super co-contribution is a government measure to boost superannuation savings. If you are a low or middle income earner, you may be able to receive the super co-contribution from the government by making eligible personal superannuation contributions to your superannuation fund. You do not have to contribute the full $1,000 to be eligible - any amount up to $1,000 will attract the super co-contribution.

The government co-contribution:

  • must be preserved in a super fund or retirement savings account (RSA) - it can only be accessed when other preserved amounts can be accessed
  • is not included as income in your tax return
  • will not be subject to tax when paid to the fund or RSA provider
  • will not be taxed when received as a benefit.

Prior to 1 July 2007, only individuals who received income from employment-related activities were eligible to receive the co-contribution. However, from 1 July 2007, the co-contribution initiative has been extended to include self-employed persons.

The maximum co-contribution payable and the way the ATO work out the amount of co-contribution payable depends on the financial year in which you made your eligible personal super contributions.

Following is a link to a calculator provided by the Australian Taxation Office. Use the Super co-contribution calculator .

This is a tool to help individuals, including the self-employed, estimate their co-contribution entitlement and eligibility, based on information provided about:

  • income
  • personal super contributions.

In the ATO tool you will need to enter the amounts of your:

  • personal super contributions
  • employment and business income, including partnership distribution
  • any reportable fringe benefits amounts
  • any reportable employer super contributions
  • any other income.

For individuals with business income, you must also enter the amount of business related deductions.

If you have any doubts about your ability to do this, or you would like advice and assistance to guide you through the many options, act now to get the knowledge and mentoring that you need.

Where to from here?

If you would like to discuss the topics raised or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 - 153 Miller St, North Sydney NSW 2060

Financial Advice from your Family

Wednesday, June 2nd, 2010

This morning at breakfast,  I had another one of those magic moments, where I had a strange sense of parental dejavu …. I’m sure you know, what I mean … one of those moments where if I could turn back the clock to when I was the child, I could visualise my father saying the very same thing to me that I said to my son - ”You know money doesn’t grow on trees, so …  No, it’s not likely you’ll get everything on your list for your brithday”.

 Within the many google news alerts I received this morning was an article by Gregory Karp, South Bend Tribune - Financial advice from Fathers which I enjoyed.

Apparantly, in America at the moment many retailers dub the coming time of the year “dads and grads”, a catchy phrase reminding you to buy gifts for Fathers day and imminent graduations. Gregory Karp combines some other catchy phrases we all may have experienced variations of over time in with this time of the year. Perhaps my own dejavu experience drew me to the article.

Many dads consider it their mission to educate their children in some of the rules of the real world. Helping their children to learn to tell themselves “No” or suffer the consequences. Overspending is a rite of passage of sorts for many people. The easiest way to say “No” is when you have a reason, so create money goals for something you want more than daily temptations comes forward … for example: saving for house down payment, paying cash for your next car or saving for wedding, travel or honeymoon.

In his article Gregory Kapp expands a little further on the following sage advice you may have received:

  • Save for your future
  • Save for a rainy day
  • I’m not made of money … what do you think I am, a bank?
  • Live within your means
  • Would you jump off a bridge if your friends did? … Look before you leap

I know I found myself nodding while recollecting some of those very same words coming out of my fathers mouth over the years before his passing.

I’d be interested to learn what gems of sage advice have you absorbed from your family?  

Where to from here?

If you would like to discuss the topics raised in this post or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 - 153 Miller St, North Sydney NSW 2060

MLC May 2010 Market Update and Federal Budget e-newsletter

Tuesday, May 11th, 2010

As April was a month of mixed fortunes for sharemarkets, what has it meant for MLC funds?

In this update, MLC Senior Investment Strategist John Owen looks at:

  • the impact of ongoing sovereign risk concerns in Europe
  • in contrast, the encouraging news coming out of company earnings reports, and
  • how MLC funds have fared

View the May MLC Fund Performance Update video here.
Download John Owen video script.

How can you benefit from opportunities in the Federal Budget 2010?

On the back of the Henry and Cooper reviews, this year’s Federal Budget is one of the more eagerly anticipated.

But how will it impact you and your family? How can you make the most of any opportunities it presents?

To find out, subscribe to MLC’s 2010 Federal Budget e-newsletter.

Less than 24 hours after the Budget is handed down, you’ll receive expert information and analysis detailing the key measures, and how they’re likely to affect you.

Where to from here?

If you would like to discuss the topics raised in this video or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 - 153 Miller St, North Sydney NSW 2060

Summary of Governments response to Henry review

Monday, May 3rd, 2010

Yesterday the Government released it’s response to the much awaited Henry review of taxation. They have announced a range of proposals that are likely to provide a positive outcome to many people.

As with any announcement further analysis will be in the details provided and further clarification received. At this point I would like to highlight some of the key proposals that many of the Technical gurus that live and breathe this stuff are salivating about:

The superannuation guarantee (SG) rate will increase gradually from 9% to 12% from 01 July 2013

The SG contribution age limit will increase from 70 to 75 from 01 July 2013

A Government Super contribution of up to $500 pa will be made for people earning up to $37,000 pa from 01 July 2012 to effectively refund contributions tax paid

The Concessional Contribution (CC) cap will be reinstated to $50,000 pa from 01 July 2012 for people aged 50 and over with Super balances below $500,000

The company rate of tax will gradually reduce to 28% by 01 July 2014 (and two years earlier for eligible small businesses)

Very generous depreciation rules will apply to small businesses from 01 July 2012, and

A 40% Resource Super Profit Tax will be introduced from 01 July 2012

The Government has stated it will not adopt some of the changes contained in the Henry review. It’s also indicated that in coming months it “will have more to say on a number of other areas considered by the review, especially making tax time simpler for everyday Australians, improving incentives to save and improving the governance and transparency of the tax system”.

A list of the full Henry recommendations is contained in Australia’s Future Tax System - Final Report.

The best approach for anyone contemplating further wealth creation, wealth preservation or wealth succession will depend on his or her own personal and financial circumstances, but the key message is that you must do something! There are many strategies that can be accessed even if you don’t have vast sums of money or other resources available.

It is important to regularly review your plan. This helps you take advantage of any current or future opportunities created by:

•Ø      Your changing life situation and goals

•Ø      A changed economic or legislative environment

•Ø      Emerging investment markets and new products

If you have any doubts about your ability to do this, or you would like advice and assistance to guide you through the many options, act now to get the knowledge and mentoring that you need.

Where to from here?

If you would like to discuss the topics raised or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 - 153 Miller St, North Sydney NSW 2060

How secure are your retirement plans?

Wednesday, April 21st, 2010

If you’re approaching retirement, you may be wondering how life is going to treat you on the health and financial fronts. That can be challenging enough in itself.

Probably the last thing you’d expect to cope with would be taking on a parental role again, but for around 22,500* Australians this is something they’re already experiencing.

If something happened to your son or daughter, you’d want to make sure your grandchildren were looked after financially, whether you became the legal guardian or played a supportive role.

A growing concern

While financial worries wouldn’t be top of mind during such family trauma, if your child hasn’t planned ahead there could be financial pressure on your retirement funds.

By investing in Life and/or Total and Permanent Disability insurance, your child can make sure the financial pressure of raising their children is eased.

This means you can focus on providing the emotional support and family structure to stabilise your grandchildren’s home life.

The cold hard facts

  • An adequate standard of living in retirement requires 70-80% of pre-retirement expenditure.
  • Baby boomers are expected to live, on average, some seven years longer than their parents.
  • 20% of baby Boomers will probably inherit very little or nothing at all.
  • ‘Cancer has overtaken cardiovascular disease as the leading cause of burden.’ §

Start the conversation

So while talking to your grown, self-sufficient child about their financial obligations is difficult, you owe it to yourself and your grandchildren to start the conversation as early as possible.

Here are some statistics to help you with the conversation.

  • To raise two children from birth to age 21 can cost $537,000, which would put a serious dent in your retirement nest-egg.
  • Food, housing, health, education and clothing take up 55% of the total cost of raising two children for middle income families.
  • The costs of recreation, transport, fuel and power accumulate to just over $134,000, with food amounting to $107,800 to raise two children.
  • You may find you can’t get State education allowances or ‘school cards’.
  • If you’re a self-funded retiree (or still in the workforce) Centrelink’s means tests may result in you not being eligible for any family support payment.

At a time when individuals are increasingly expected to self-fund in retirement, Baby Boomers have become the ‘bunnies’, caught in a situation in which they are being asked to do something they do not have the capacity to do.

Source:

  • The Australia Institute; Rich Boomer, Poor Boomer, 2006.
  • * ABS: Family Characteristics, Australia, 2003.
  • † The Australia Institute; Rich Boomer, Poor Boomer, 2006.
  • ‡ NATSEM, Wealth and inheritance, 2003.
  • § Australian Institute of Health and Welfare, 2007.
  • ║NATSEM, Australian child costs in 2007.

Case study - David & Susan Jones

David was 15 when he started an apprenticeship at his local steel works.  Forty years later, he was still working at the same factory. 

His wife Susan has kept the family ticking along, having raised four children to become independent adults with their own families.

After a company restructure was announced, David took the opportunity to ask for a redundancy and succeeded in getting a healthy redundancy package. This, together with his superannuation and accumulated benefits, meant David and Susan were sitting pretty for an early retirement. 

Both David and Susan viewed this as a great opportunity to enjoy time with their grandchildren and to travel around Australia.

On Boxing Day of that year, David’s eldest son Rodney had a massive brain haemorrhage and passed away. 

And, because he was young and didn’t see the need for any life insurance, Rodney left his wife and three children without any means of support.

As any parent or grandparent would, David & Susan took in Erin and the kids into the family home.

The unplanned financial impact on David, Susan and their retirement plans was devastating and they were unable to do most of the things that they had hoped 40 years of work would allow them to do.

This case study is for illustrative purposes only.

“Wondering: What should I do? … “

Speak to your financial adviser about the best way to protect and manage the financial future of both you and your loved ones.  For example, you could pay for your child’s insurance if they aren’t in a position to do so themselves.

Where to from here … Maybe, it’s time we talked?

If you would like to discuss the topics raised in this post or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 - 153 Miller St, North Sydney NSW 2060

MLC Fund Performance Update March 2010

Friday, March 26th, 2010

With February a good month for sharemarkets, what has it meant for MLC funds? In this update, MLC’s Senior Investment Strategist John Owen looks at:

  • MLC Australian Share Strategy performance in February
  • the outperfomance of MLC Australian bonds managers, and
  • what it means for the MLC Balanced and Growth Funds

To view the video, click the following link:

View the March MLC Fund Performance Update video here.

Where to from here?

If you would like to discuss the topics raised in this video or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 - 153 Miller St, North Sydney NSW 2060

Forget those great expectations

Wednesday, March 17th, 2010

I thought you may value an article I came across written by Robin Bowerman, Head of Retail at Vanguard Investments Australia.

Robin comments on some long held beliefs of the wider Australian population regarding inheritances.

To view the article, click the following link: http://www.vanguard.com.au/personal_investors/news–commentary/smart-investing/smart-investing_home.cfm?item=forget-those-great-expectations&WT.mc_id=si    

Where to from here?

If you would like to discuss the topics raised in this article or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 - 153 Miller St, North Sydney NSW 2060

Bond - Investment Savings Bond

Tuesday, February 2nd, 2010

Saving for the future

  • Do you want to build your wealth and pay less tax?
  • Are you saving for your child or grandchild’s future?
  • Do you wish to retire earlier?

An investment bond can help you achieve your long-term goals tax-effectively.

Investment bonds provide you with an opportunity to build your wealth over the long term in a unique tax environment by investing in a range of investment options that are managed by professional fund managers. 

Dan Smith of Plan 2 Prosper says, “The great aspect about investment bonds is they suit a range of different investors: high income earners looking to minimise income tax or fund an early retirement, parents or grandparents wanting to save money for their children, or business owners wanting ownership flexibility and protection of their assets against the risk of bankruptcy.” (more…)